How Does the Digital Personal Data Protection (DPDP) Act Impact Organisations in India?

How well does your organisation protect personal data? With more businesses collecting customer information online, data privacy has become a major business concern in India.

The Digital Personal Data Protection (DPDP) Act, 2023 was enacted in August 2023. It created a new legal framework for handling digital personal data in India. The Act sets out responsibilities for organisations that collect or process personal data and gives individuals greater control over how their information is used.

For businesses, this means that data protection can no longer be treated as only an IT concern. It requires changes across policies, processes, technology and employee practices.

Key Features of the Digital Personal Data Protection (DPDP) Act

The Digital Personal Data Protection (DPDP) Act provides for a Data Protection Board of India. The Board handles certain matters related to breaches and non-compliance under the Act. It gives organisations another reason to take data protection responsibilities seriously.

Organisations must obtain consent before processing users’ personal data, and the consent request must be clear and understandable. Organisations must give individuals the option to withdraw their consent.

The Act provides additional protection for children below 18 years of age. Platforms that collect children’s data require parental consent. As a result, it places appropriate restrictions on tracking, behavioural monitoring and targeted advertising directed at children.

The Digital Personal Data Protection (DPDP) Act places important responsibilities on Data Fiduciaries to decide why and how personal data is processed. As a result, they must take reasonable security measures to prevent personal data breaches. They must also follow requirements related to data retention and deletion.

What Are the Implications of the DPDP Act for Businesses?

The DPDP Act can affect almost every part of an organisation that handles digital personal data. Businesses may need to review their existing systems and identify areas where their current practices do not meet the new requirements.

Businesses need to know what personal data they collect and why. They should also know where the data is stored and who can access it. A data inventory can help them remove information they no longer need and reduce security risks. Privacy notices should also be easy to read so customers know how their data will be used.

Businesses should also check how they protect personal data. Encryption, secure logins and access controls can help prevent data breaches. They should also check how cloud providers and other third parties handle the data. As a result, clear contracts can help keep these risks in check.

Finally, organisations need clear processes for managing data breaches and meeting their responsibilities under the Act. Larger organisations may have additional duties. Written procedures and clear ownership can help businesses respond quickly and manage data protection more effectively.

How Can ISO Consultants Help With DPDP Compliance?

Understanding legal requirements is one thing. Putting effective controls into practice is another.

This is where ISO consulting services can support organisations. An ISO consultant can help businesses build structured processes for managing information security and related risks.

ISO/IEC 27001 is particularly relevant because it provides a recognised framework for establishing an Information Security Management System (ISMS).

An ISO consultant can help an organisation:

 Identify information security risks.

 Review existing controls and procedures.

 Develop suitable information security policies.

 Improve access control and data handling practices.

 Train employees on information security responsibilities.

 Conduct internal audits.

 Prepare evidence for certification audits.

 Establish a process for continual improvement.

ISO/IEC 27001 certification does not automatically mean that an organisation complies with every requirement of the DPDP Act. However, a well-designed ISMS can provide a strong foundation for managing information security risks and supporting regulatory compliance.

How ISO Consultancy Services Support Data Protection

A consultant can start by comparing the organisation’s current practices with ISO/IEC 27001 requirements. This gap analysis shows where improvements are needed and gives the business a clear starting point. A risk assessment can then help identify threats to important information and choose controls that match those risks. Consultants can also help develop practical policies for areas such as access control, incident response and information handling.

Good security also depends on employees. Staff need to know how to handle information safely and what to do when a security issue occurs. Training can help them follow the right procedures and spot common risks. Internal audits can then check whether these controls are working properly. They can also help find problems before the external certification audit or a regulatory review.

Conclusion

The DPDP Act, 2023 has made data protection an important business responsibility in India. Organisations that collect or process digital personal data need to understand their obligations and strengthen their internal practices.

A structured information security system can make this process easier to manage. ISO/IEC 27001 certification can help organisations establish stronger controls, manage security risks and build greater confidence among customers and business partners.

For organisations preparing for the changing data protection environment, working with experienced ISO consultants in India can provide the guidance needed to build a practical and effective information security framework.